Mercantile Ventures Analysis

dividend

Pros

Cons

• Unable to evaluate Mercantile Ventures's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Mercantile Ventures's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Mercantile Ventures is profitable, therefore cash runway is not a concern.
• Mercantile Ventures is profitable, therefore cash runway is not a concern.
• Mercantile Ventures has no debt, it does not need to be covered by operating cash flow.
• Mercantile Ventures has no debt, it does not need to be covered by short term assets.
• Mercantile Ventures's cash and other short term assets cover its long term commitments.
• Mercantile Ventures has no debt compared to 5 years ago when it was 3.2%.
• Mercantile Ventures has no debt, therefore coverage of interest payments is not a concern.
• Mercantile Ventures has no debt.

Cons

• Mercantile Ventures's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Mercantile Ventures board of directors is about average.
• Edayathumangalam's remuneration is about average for companies of similar size in India.
• Edayathumangalam's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Mercantile Ventures management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• Mercantile Ventures is not covered by any analysts.
• Mercantile Ventures has significant price volatility in the past 3 months.

past

Pros

• Mercantile Ventures's 1-year earnings growth exceeds its 5-year average (58.8% vs -11.8%)
• Mercantile Ventures has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Mercantile Ventures's earnings growth has exceeded the IN Real Estate industry average in the past year (58.8% vs 9.7%).

Cons

• Mercantile Ventures's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Mercantile Ventures used its assets less efficiently than the IN Real Estate industry average last year based on Return on Assets.
• Mercantile Ventures has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Mercantile Ventures's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Mercantile Ventures is good value based on assets compared to the IN Real Estate industry average.
• 538942 outperformed the Real Estate industry which returned -24.3% over the past year.
• 538942 outperformed the Market in India which returned -14.5% over the past year.
• BSE:538942 is up 25.1% outperforming the Real Estate industry which returned 13.9% over the past month.
• BSE:538942 is up 25.1% outperforming the market in India which returned 8% over the past month.

Cons

• Mercantile Ventures's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Mercantile Ventures is overvalued based on earnings compared to the IN Real Estate industry average.
• Mercantile Ventures is overvalued based on earnings compared to the India market.